Which of the Following Is Classified as an Operating Activity

question 133

Multiple Choice

Which of the following is classified as an operating activity on a statement of cash flows?

• A) payment of dividends
• B) sale of equipment
• C) issuance of common stock
• D) purchase of inventory with cash

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Definitions:

Risky-Shift Effect

A phenomenon where a group collectively decides on a course of action that is riskier than the decisions that individual group members would make on their own.

Informational Influence

Informational Influence occurs when individuals conform to the behaviors or attitudes of a group to obtain and accept accurate information or because they believe the group is competent.

Groupthink

A phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often in group settings, leading to uncharacteristic behavior.